JAPANESE
JAPANESE
Japan Real Estate Insights by estie
Japan Real Estate Insights by estie
Japan Real Estate Insights by estie
/
Logistics
/

Nishitetsu Breaks Ground on Logistics Facility Development in Mesa, Arizona

LogisticsOverseasNew development

Nishitetsu Breaks Ground on Logistics Facility Development in Mesa, Arizona

Nishitetsu Breaks Ground on Logistics Facility Development in Mesa, Arizona

Nishi-Nippon Railroad Co., Ltd. (Nishitetsu) announced on January 29, 2026 that it has begun developing a logistics facility in Mesa, Arizona. The project will be carried out through HC/ACP EASTMARK INDUSTRIAL PHASE I, LLC, an operating company jointly established with local real estate developer ATLAS Capital Partners (ATLAS). Total project cost is approximately USD 25 million (approx. JPY 4.0 billion). This marks Nishitetsu’s first joint development with ATLAS and its first development project in Arizona.

The project will subdivide an approximately 49,000 sq. m site (approx. 527,000 sq. ft.) (approx. 14,800 tsubo (approx. 527,000 sq. ft.)) into two parcels and develop two single-story precast-concrete (PC) logistics buildings. Both buildings will be Nishitetsu’s first IOS (Industrial Outdoor Storage) facilities—an asset type that keeps building coverage low while securing larger outdoor storage areas. One of the two buildings will be developed on a BTS (build-to-suit) basis to meet tenant requirements. Parcel 1 will have a site area of approximately 29,000 sq. m (approx. 312,000 sq. ft.) and a gross floor area of approximately 4,600 sq. m (approx. 49,500 sq. ft.), with completion scheduled for October 2027. Parcel 2 (BTS) will have a site area of approximately 20,000 sq. m (approx. 215,000 sq. ft.) and a gross floor area of approximately 3,800 sq. m (approx. 40,900 sq. ft.), with completion scheduled for January 2027.

Nishitetsu currently has 29 projects underway across six countries. In the U.S., it is pursuing income-producing real estate development and previously developed a logistics facility in the suburbs of Chicago, Illinois in 2019 (sold in 2021). In November 2025, the company also joined a residential land development project in Waxahachie, Texas (see related article: “Nishitetsu Participates in Residential Land Development in Texas”), accelerating its business expansion in the U.S.

Mesa is a city of approximately 510,000 people located within the Phoenix metropolitan area (population approx. 5.19 million), which has seen rapid population growth and corporate in-migration. The site is about 50 km east of central Phoenix (approximately 40 minutes by car) and offers strong access to highways and the airport. The surrounding area is home to numerous data centers and logistics facilities operated by major companies, and is expected to see continued demand for logistics space.

Key Facts

  • Project Name: HC/ACP EASTMARK INDUSTRIAL PHASE I

  • Sponsor/Developer: HC/ACP EASTMARK INDUSTRIAL PHASE I, LLC (joint investment by Nishitetsu and ATLAS Capital Partners)

  • Location: 4140 S Signal Butte Road, Mesa, Arizona 85212, USA

  • Construction Start: January 2026 (Parcel 2), May 2026 (Parcel 1)

  • Completion: January 2027 (Parcel 2), October 2027 (Parcel 1)

  • Number of Floors: 1F / B0 (precast concrete; two IOS-type buildings)

  • Area: Site Area approx. 49,000 sq. m (approx. 527,000 sq. ft.) (approx. 14,800 tsubo (approx. 527,000 sq. ft.)); Gross Floor Area approx. 8,400 sq. m (approx. 90,400 sq. ft.) (approx. 2,500 tsubo (approx. 89,000 sq. ft.))

  • Total Project Cost: approx. USD 25 million (approx. JPY 4.0 billion)

Related Articles